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2015 (8) TMI 626 - HC - CustomsProhibition to work as CHA Non-compliance of Regulation, 2004 Violation of principle of Natural Justice Petitioners who were granted license to function as Customs House Agent, were prohibited from functioning as such, by way of orders of prohibition, issued under Regulation 21 of Regulations, 2004 which alleged to have been passed with utter disregard to principles of natural justice Whether Regulation 21, ultra vires powers of Board under Section 146(2) of Customs Act,1962 Held that:- Section 146 mandates that CHA is required to be licensed; and no person is entitled to carry on business as agent unless he holds license Regulation 21 give powers to Commissioner to prohibit any CHA of working in any section or sections of Customs Station on being satisfied that such CHA has not fulfilled his obligations laid down under Regulation 13 This power of prohibition appears to be essentially that of preventive measure rather than punitive one Proceeding on guiding principles of scheme of Act, 1962 and Regulations,2004, Regulation 21 cannot be said to be invalid and ultra vires when Board was invested with powers to make regulations generally for purpose of regulating license of CHA. Impugned order was challenged only on ground that before passing prohibitory order, opportunity of hearing was not given to petitioner On consideration, impugned order cannot be sustained as said order was final Well-settled law that even administrative orders which affects rights of party can be passed only by following principles of natural justice Order under Regulation 21 was passed in violation of principles of natural justice on face of it was arbitrary and thus not sustainable in law Petition allowed Impugned order set aside Decided in favour of Petitioners.
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